IMF pays 1st official visit to Syria since 2009

ISTANBUL

Officials from the International Monetary Fund visited Syria's capital Damascus on June 1-5 to assess economic and financial conditions and discuss with the authorities their economic policy and capacity-building priorities to support recovery of the country’s economy.

The visit marked the first official visit of IMF staff to Syria since 2009 – before the country’s 13-year civil war – according to a Tuesday statement by the Fund.

"Amidst enormous challenges, the Syrian authorities are determined to rehabilitate Syria’s economy. In the near term, it is critical to restore public confidence and macro-economic stability through the pursuit of sound fiscal and monetary policies and create conditions for the private sector to lead Syria’s development and growth," the IMF said.

The statement stressed that Syria will need substantial international assistance to support authorities’ efforts to rehabilitate the economy, meet urgent humanitarian needs, and rebuild essential institutions and infrastructure. "This not only includes concessional financial support, but also extensive capacity development assistance."

The statement, which also included the assessments of IMF Syria Mission Chief Ron von Rooden, who led the delegation, said Syria is facing major challenges after years of conflict.

Citing how around 6 million people have fled the country, mostly to neighboring countries, and 7 million people have been internally displaced, the statement noted that economic output has fallen, real incomes have declined sharply, and poverty is high.

State institutions have been weakened, basic services have been disrupted, and much of the country's infrastructure has been damaged or destroyed, the statement stressed, adding that the humanitarian and reconstruction needs are very large

"There is great urgency to address these challenges and achieve a sustainable economic recovery, including to absorb the increasing number of returning refugees," it said.

The IMF mission reaffirmed the Fund's commitment to support Syria, the statement said, adding that Fund officials developed a detailed roadmap for policy and capacity-building priorities for key economic institutions, particularly the Finance Ministry, Central Bank, and state statistics agency.